America West Airlines (NYSE: AWA) today
filed for federal mediation with the National Mediation Board to facilitate
contract negotiations with its pilots.
America West`s action follows the April 17, 2001, submission of a
comprehensive contract proposal by the Air Line Pilots Association (ALPA).
Contract negotiations between America West and ALPA, which represents the
airline`s 1,800 pilots, began in February 2000.
“After more than a year of negotiations, we are disappointed that ALPA`s
proposal ignores the revenue-generating capabilities of America West and the
impact on the job security of our 14,000 employees,” said William A. Franke,
chairman and chief executive officer. “We are taking this unusual step
because we are convinced it is the only way to reach an agreement.
“Presented with ALPA`s latest proposal, it is clear to us that an
agreement cannot be reached through the current negotiating process,” added
Franke. “We trust that the National Mediation Board can facilitate a rational
Under the Railway Labor Act, mediation may be invoked under the auspices
of the National Mediation Board if either party concludes that no progress is
being made in negotiations. There is no time limit on mediation.
“We are determined to continue to provide our customers with safe,
efficient and cost-effective air travel during the collective bargaining
process,” said Franke. “Our business decisions—including employee contract
negotiations—support that goal.”